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At Wharf Gate (AWG) prices for New Zealand export logs increased $7-$8 per JASm3\u00a0in both January and February. Log demand in China has not increased as much as expected after the Lunar New Year, but there will be significantly reduced log supply from New Zealand due to several severe weather events across the top half of the North Island. This will likely increase price pressure for logs in China. \u00a0The domestic demand for logs is weakening as building projects are cancelled or delayed.\u00a0<\/span><\/p>\n The PF Olsen Log Price Index increased $4 in both January and February to $127. The index is now $4 above the two-year and $3 above the five-year average.<\/span><\/p>\n There was very little change in log prices around New Zealand for Quarter 1. Pruned logs remained unchanged while in some regions structural logs reduced by about $1 per tonne.<\/p>\n While there have been plenty of building consents, these are not translating into projects starting. This is due to a combination of poor weather, high interest rates and business uncertainty.<\/p>\n There is an oversupply of structural sawn timber and many NZ mills are actively reducing production. There is price pressure as sellers look to maintain or increase their market share.<\/p>\n Many sawmill managers say this is the worst decking season they can remember. Clearwood is used to manufacture premium decking. Exports prices for clear sawntimber into Europe specifically are still strong.<\/p>\n Sale prices for sawn timber into Asian countries continue to fall.\u00a0Some grades have fallen as much as 40% over the last six months.<\/p>","protected":false},"excerpt":{"rendered":" At Wharf Gate (AWG) prices for New Zealand export logs increased $7-$8 per JASm3\u00a0in both January and February. Log demand in China has not increased as much as expected after the Lunar New Year, but there will be significantly reduced … Continue reading